What "backs" the money supply of the U.S.?
A. The U.S. government's ability to keep the value of money relatively stable
B. The amount of gold the U.S. government has on deposit at its banks
C. The fact that currency is issued by the Federal Reserve System
D. The fact that the intrinsic value of coins in circulation is greater than their face value
A. The U.S. government's ability to keep the value of money relatively stable
You might also like to view...
A conspiracy among firms to fix prices was outlawed by the Sherman Antitrust Act
a. True b. False Indicate whether the statement is true or false
Suppose that consumers become pessimistic about the future health of the economy. What will happen to aggregate demand and to output? What might the president and Congress have to do to keep output stable?
One of the Fed's functions is to be the government's banker. This function means that the
A) Fed holds bank reserves B) Fed extends loans to the government whenever it spends more than it collects in tax revenues. C) government's checking account is at the Fed. D) all of the above
Explain what economists mean by rational choice and think of three choices that you've made today that are rational
What will be an ideal response?